14-Deliberate and act on Resolution with Liberty National BankCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
1-18-11
Council Date:
1-24-11
Finance
Gene Anderson
14.
RECOMMENDED MOTION:
Move to approve a Resolution accepting the bid and awarding a contract with Liberty National Bank for
depository bank services; and authorizing the City Manager to ne rotiate and execute all necessary documents
POLICY ISSLJE(S):
Fiscal management
Public notice was given that the Governing Body of the City of Paris, subject to the provisions of
Chapters 105 and 131 of the Texas Local Government Code, would receive bids and applications from
all interested banking institutions within the City of Paris to serve as prime depository of the City of
Paris and maintain custody of the funds of the City for a period of two years from March 1, 2011
throUgh February 28, 2013. Notice was published in the Paris News and emails were sent to local banks.
Bids were received at the office of the City Manager until 3:00 P. M., Tuesday January 18, 20] 1 with
only Liberty National Bank submitting a bid. The staff recommends acceptance of this bid.
BOARD/COMMISSION RECOMMENDATION:
None
E XHIBITS:
Resolution and bid document.
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Onder
Expense
$NA
❑ Department Report E Resolution
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Budgeted Amt
$NA
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resentation ❑ Ordinance
❑ P
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❑ O
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yTD Actual
$NA
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Acct Name
NA
Acct Number
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FISCAL NOTES:
None
REVIEWED AND APPROVED BY:
0 Administration Z City Clerk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
Cit,y of Paris ~ Revised 2/04/08
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DRAFT
S:\RESWORK\CURRENT\City Depository RES 2011.docx
RESOLUTION N0.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AWARDING THE BID FOR CITY DEPOSITORY FOR THE PERIOD
BEGINNING MARCH 1, 2011 AND ENDING FEBRUARY 28, 2013;
AUTHORIZING THE EXECUTION OF A CONTRACT UPON THE TERMS AND
CONDITIONS SET OUT IN THE INSTITUTION'S BID; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Paris, Texas, did heretofore advertise for bids in accordance
with the laws of the State of Texas and the Charter of the City of Paris for a City Depository,
which bids were received until 3:00 o'clock P.M., Tuesday, January 18, 2011; and,
WHEREAS, the best bid for City Depository was made by Liberty National Bank in
Paris, and it should be awarded the contract for such depository;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby
in all things approved.
Section 2. That the bid of the Liberty National Bank in Paris to act as City
Depository for the period beginning March 1, 2011, and ending February 28, 2013, be, and
the same is hereby, accepted.
Section 3. That the Mayor be, and he is hereby, authorized and directed to
execute, on behalf of the City of Paris, the contract with Liberty National Bank in Paris to
act as City Depository for the City of Paris upon the terms and conditions set out in that
institution's bid, attached hereto as Exhibit A.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 24th day of January, 2011.
Will Biard, Mayor
ATTEST:
Janice Ellis, City Clerk
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APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
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NOTICE TO BANKING INSTITUTIONS WITHIN THE CITY OF PARIS
Notice is hereby given that Governing Body of the City of Paris, subject to the provision of
Chapters 105 and 131 of the Texas Local Government Code, will receive bids and applications
froni all interested banking institutions within the City of Paris to serve as prime depository of
the City of Paris and maintain custody of the funds of the City for a period of two years from
March 1, 2011 through February 28, 2013. Any such application shall be delivered to the office
of the City Manager located in City Hall prior to 3:00 P. M., Tuesday January 18, 2011.
It is required that each bank bid by filling in all blanks and agreeing to the following
specifications;
Bank will pay to City interest on time deposits in accordance with the following schedule:
CERTIFICATES OF DEPOSIT UNDER $100,000
MATURITY RATE
7-13 days
T-bill plus or minus 0
basis points
14-29 days
T-bill plus or minus 0
basis points
30-59 days
T-bill plus or minus 10
basis points
60-89 days
T-bill plus or minus 20
basis points
90-179 days
T-bill plus or minus 40
basis points
180-365 days
T-bill plus or minus _75
basis points
CERTIFICATES OF DEPOSIT OVER $100,00
0
7-13 days
T-bill plus or minus _g_ basis points
14-29 days
T-bill plus or minus _0 basis points
30-59 days
T-bill plus or minus 15 basis points
60-89 days
T-bill plus or minus 40 basis points
90-179 days
T-bill plus or minus 6,0 L basis points
180-365 days
T-bill plus or ininus _go basis points
All investment services offered to other bank customers will be available to the City.
Thc City will accept bids only on the basis herein after clescribect.
Each day, the Wall Street Journal publishes the 26 week treasury-bill yield based on the results of
the most recent treasury-bill auction. Rates for certificates of deposit under this contract must be
tied to this 26 week treasury-bill yield. The rates should be quoted either plus or minus a given
number of basis points from this 26 week treasury-bill yield. Using the Wall Street Journal dated
the saine day as the certificate of deposit is purchased, the certificate of deposit rate will be the
26 week T-bill rate published that day in the Wall Street Journal plus or minus the basis points
listed above.
ExHretT A..
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CHARGES
List below any service charges that will be levied against the City:
NONE
In addition to the normal services and supplies furnished by the depository bank, the following
services are standard and common to most depository contracts. They are to be furnished to the
City at no charge:
deposit slips
one large safe deposit box
coin wrappers
night depository service including bags and keys
traveler's and cashier's checks
daily balance on each account
money orders
stop payment orders
wire services
checking and savings accounts
all bank accounts will be interest bearing accounts
on line banking
overdraft protection
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Bidders are requested to submit a list of any further concessions or services in the space provided
below which they may want to offer to the City of Paris and make any comment as further
consideration in selecting the City's depository. If needed, please add additional pages.
Bank wiil pay interest on the City's Consolidated Cash Account at a rate equivalent to the auction rate for 26-week
Treasury bills plus 52 basis points. The rate will be changed each calendar quarter and caiculated using the most
recent Treasury bill auction.
Using the Treasury bill auction of January 10, 2011, a rate of .70% would result.
Upon notification to Bank, the City of Paris would have the option to bring other City transaction accounts under a
rate plan paying the auction rate for 26-week Treasury bills plus 10 basis points.
Using the Treasury bili auction of January 10, 2011, a rate of .28% would result.
Bank will originate City's ACH payments, both debits and credits without charge. Bank will furnish to City without
charge at the end of each year CD's containing a summary of each transaction account activity.
All monies which are deposited into the depository under the provisions of this proposal shall be
continuously secured, in accordance with the laws of the State of Texas applicable thereto, by a
valid pledge of par, exclusive of accrued interest, at all times at least equal to 102% of the
amount of money on deposit in said several funds on deposit in the depository.
All time deposits or certificates of deposits which have not elapsed on the termination date of the
finally approved depository contract, shall remain on deposit with the same depository under the
same terms and conditions in effect during said contract until the date such time deposits have
elapsed. Funds from Bond sales may be deposited in the City depository or placed in outside
investments.
The CiTy of Paris reserves the right to accept or reject any or all bids, to waive formalities, and to
accept the bid the City considers the most advantageous. The City also resez-ves the right to place
or invest part or all of its surplus or excess funds outside the designated depository, in any
manner permitted by law, from time to time throughout the term of the contract.
The undersigned bank official represents that he is authorized by the Bank's Board of Directors
to sign this document and legally obligate the Bank to the terms stated in this agreement.
NAME OF BANK LIBERTY NATIONAL
~ ~ ~ C-L-j
BY:
PHILIP R. CECIL
TITLE: CHAzRmar1
DATE: JANIIARY 18, 2011
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